Rosneft, Russia’s largest oil producer, will reportedly supply oil to the State Oil Company of Azerbaijan Republic’s (SOCAR) Turkey Aegean Refinery (STAR) established in İzmir’s Aliağa district.
According to press reports, the agreement was signed during a meeting between Azerbaijan’s President Ilham Aliyev and Russian President Vladimir Putin and Rosneft CEO Igor Sechin in Sochi beginning September 2018.
SOCAR’s President Rovnag Abdullayev and Rosneft’s Sechin signed the agreement that will bring Russian oil to the SOCAR’s refinery, which is expected to become operational in fall 2018.
With this contract, 1 million tons of Russian oil per year will reportedly be supplied to Turkey’s largest foreign investor SOCAR’s Star Refinery as of December this year.
The refinery is expected to cut Turkey’s current account deficit by $1.5 billion. It also looks to fully eliminate the need to import jet fuel, which will correspond to 7-8 percent of its total production. The refinery is also expected to reduce LPG imports to 70 percent from 79 percent.
With an annual production capacity of 10 million tons of crude oil, the refinery will also produce 1.6 million tons of naphtha, 1.6 million tons of jet fuel, and 4.5 million tons of low-sulfur diesel that the Petkim refinery needs will be produced at STAR.